Caixin
Jun 22, 2024 09:02 PM
BUSINESS

China Slams EU’s EV Anti-Subsidy Probe as ‘Disregarding’ WTO Rules

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Photo: VCG
Photo: VCG

China has slammed the European Commission for requiring Chinese electric-vehicle (EV) and battery makers to provide additional information for its anti-subsidy probe as beyond what is required, saying that its requirements “undermine fair competition” and “disregard” World Trade Organization (WTO) rules.

“The types, scope and amount of information that the European Commission has asked from Chinese companies are unprecedented, far exceeding the needs of the anti-subsidy investigation,” said He Yadong, a spokesperson for the Ministry of Commerce (MOC), at a Thursday media briefing.

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  • China criticized the European Commission's anti-subsidy probe, claiming it exceeded requirements and violated WTO rules.
  • The European Commission plans to impose up to 48% tariffs on Chinese electric vehicles (EVs), with an additional 38.1% for non-compliance.
  • Chinese carmakers suggested retaliatory measures, including 25% tax on EU cars, potentially impacting German automakers amidst ongoing diplomatic discussions.
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Who’s Who
BYD Co. Ltd.
BYD Co. Ltd. is one of the three sample companies involved in the European Commission's anti-subsidy probe, which has led to new tariffs on Chinese electric vehicles (EVs). Despite cooperating with the investigation, BYD will face increased duties due to the ongoing probe that found state subsidies are enabling Chinese EV makers to undercut their EU rivals.
Geely Automobile Holdings Ltd.
Geely Automobile Holdings Ltd. is one of the three sample companies included in the European Commission's anti-subsidy probe against Chinese EV makers. As part of the investigation, Geely has been informed about the new duties set to be implemented from July 4, which are a result of the commission's findings on state subsidies.
SAIC Motor Corp. Ltd.
SAIC Motor Corp. Ltd. has been informed by the European Commission of new duties due to be implemented from July 4. SAIC's tariffs will increase by 38.1% in addition to the existing duty of 10% because the commission deemed that the group failed to cooperate with its investigation.
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What Happened When
October 2023:
The European Commission launched an investigation into state subsidies enabling Chinese EV makers to undercut their EU rivals.
June 5, 2024:
The European Commission announced its decision to provisionally impose extra tariffs on battery-electric vehicles shipped from China.
By June 20, 2024:
Senior engineer Liu Yan predicted a 30% decrease in Chinese electric cars exported to the EU due to the extra 21% duty.
June 18, 2024:
Chinese carmakers demanded the government adopt severe measures including a tax of 25% on EU-made large-engine cars in a closed-door meeting with the MOC.
June 20, 2024:
He Yadong, spokesperson for the Ministry of Commerce, criticized the European Commission's additional information requirements and accused them of undermining fair competition in a media briefing.
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